A Place At Home Franchise in 2024: Costs, Fee & FDD
Discover why A Place At Home franchise stands out in the booming senior care industry. With zero franchise failures and impressive growth, this opportunity offers a robust support system and a strong return on investment. Dive into the full analysis to see if this franchise is your next big move!
Table of Contents:
A Place At Home is a rapidly growing franchise that was co-founded in 2012 by childhood friends Dustin Distefano and Jerod Evanich in Omaha, Nebraska. After struggling to find high-quality care for their loved ones, they were determined to provide a better solution for families facing similar challenges. This led to the creation of A Place At Home, a Senior-Focused Care model that aims to offer comprehensive, consistent, and continuous care for aging adults. Their mission is clear: provide a compassionate and personalized approach to senior care, something that has set them apart in the industry.
The core services offered by A Place At Home include in-home senior care, care coordination, and senior community placement. They also provide staffing solutions for other care facilities. This wide array of services allows the franchise to meet the needs of seniors and their families in multiple ways, ensuring flexibility and quality care. Their primary market is the growing senior population in the U.S., where they help aging adults remain independent in their own homes or find appropriate care communities when needed.
Since starting their franchise journey in 2017, A Place At Home has expanded rapidly. They now have locations across the United States, with more than 30 franchises operating in various regions. This strong growth reflects the increasing demand for senior care services as the U.S. population ages. With thousands of clients served each day, A Place At Home continues to make a significant impact on the communities they serve.
A Place At Home also offers a robust franchise support system, including comprehensive training programs designed to help new franchisees succeed. Franchisees receive support in areas such as caregiver recruitment, business operations, and marketing. Their proprietary CARE (Compassionate, Accountable, Respectful, Ethical) model provides a guiding philosophy for care, ensuring that franchise owners maintain the high standards set by the founders. This support system, combined with the growing demand for senior care, makes A Place At Home an attractive option for prospective franchisees.
A Place At Home Franchise Insights
- A Place At Home has rapidly grown since its franchising began in 2017, now boasting over 30 locations across the U.S., a testament to its successful model and growing demand for senior care services.
- The franchise was founded by Dustin Distefano and Jerod Evanich, who, after personal challenges in finding quality care for their loved ones, created a model that prioritizes comprehensive, consistent, and compassionate senior care.
- The franchise serves thousands of seniors daily, reflecting its significant role in addressing the needs of the aging population and its capacity to deliver high-quality care across various regions.
- A Place At Home’s proprietary CARE model (Compassionate, Accountable, Respectful, Ethical) helps ensure that care standards remain high and consistent across all locations, enhancing the overall quality of service.
A Place At Home Franchise Key indicators
Growth YOY (%)
69%
vs industry 10%
Total U.S. Franchised Units
32
3-Year Failure Rate
0%
vs industry 8%
Sales-to-Investment ratio
14.3:1
How much does it cost to open an A Place At Home franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening an A Place At Home franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening an A Place At Home franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open an A Place At Home below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Construction and Leasehold Improvements | $500 | $1,500 |
| Furniture, Fixtures and Equipment | $3,000 | $4,485 |
| Signs | $150 | $2,000 |
| Computer, Software and System | $1,820 | $5,777 |
| Initial Website and Technology Fee | $340 | $680 |
| Initial Inventory | $150 | $300 |
| Prepaid Rent and Lease Deposits | $1,600 | $4,000 |
| Utility Deposits | $0 | $300 |
| Insurance Deposits and Premiums | $1,000 | $2,500 |
| Travel and Lodging for Initial Training | $1,250 | $2,000 |
| Marketing Launch Package Expense | $14,000 | $15,500 |
| Professional Fees | $2,500 | $5,500 |
| Business Licenses and Permits | $5,250 | $14,000 |
| Promotional Items and Office Supplies | $1,000 | $5,000 |
| Service Vehicle | $0 | $1,500 |
| Service Vehicle Wrap | $0 | $2,500 |
| Administrative Payroll | $0 | $10,000 |
| Caregivers and Registered Nurse Payroll – Three Months | $6,500 | $38,000 |
| Additional Funds – Three Months | $1,425 | $3,050 |
| Total Estimate | $89,985 | $168,092 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open an A Place At Home franchise or a similar senior care franchise, it’s important to understand the financial requirements. Here’s a breakdown of the typical capital, liquid assets, and net worth needed:
- Required Capital For A Place At Home, the total investment ranges from $90,000 to $168,000. This investment covers various expenses such as equipment, initial marketing, insurance, office supplies, and other startup costs essential for launching the business. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement You will need to have liquid assets available to cover the initial costs and manage day-to-day operations. For many senior care franchises, liquid assets of approximately $50,000 to $75,000 are recommended, although this can vary depending on the specific franchise and location.
- Net Worth Requirement A typical net worth requirement for senior care franchises is around $150,000 to $300,000. This ensures that franchisees have the financial stability to handle unexpected expenses and sustain the business long-term.
How much does an A Place At Home franchise owner make?
Calculating the salary of an A Place At Home franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of an A Place At Home franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
A Place At Home Revenue & Gross Sales
A Place At Home has demonstrated strong revenue performance recently, with median gross sales reaching $1,840,942. This figure reflects the franchise’s robust market presence and successful business model. The substantial median gross sales indicate that franchisees are benefiting from a solid demand for senior care services and a well-established operational framework.
Which key factors impact the average revenue performance of A Place At Home franchisees?
Several factors likely contribute to the strong performance of U.S. franchisee median gross sales for A Place At Home. The franchise’s success can be attributed to its comprehensive and personalized senior care services, which address a growing demand due to the aging population. The robust support system provided to franchisees, including extensive training and operational assistance, ensures high-quality service delivery and operational efficiency. Additionally, the established reputation and trust within the community play a significant role in attracting and retaining clients. The franchise’s commitment to maintaining high standards and its ability to adapt to local market needs further enhance its revenue performance.
A Place At Home Franchise Operational Costs
When opening a franchise like A Place At Home, it’s essential to account for several key ongoing operational costs to ensure smooth business operations and financial stability. These costs are critical for maintaining daily functions and providing high-quality care services.
- Staff Salaries Ongoing expenses will include salaries for caregivers and administrative staff. Attracting and retaining qualified personnel is crucial for delivering exceptional senior care.
- Insurance Comprehensive insurance coverage is necessary to protect against various liabilities, including professional liability and general business insurance.
- Office Supplies and Equipment Regular expenses include the cost of office supplies, medical equipment, and technology needed to run operations efficiently.
- Marketing and Client Acquisition Continued investment in marketing efforts is essential to attract new clients and maintain visibility in the community.
- Training and Development Ongoing training for staff to ensure they stay updated with best practices and regulatory requirements.
These operational costs are integral to the franchise’s success and must be managed effectively to ensure long-term profitability and growth.
A Place At Home Franchise Fees
When considering opening a franchise like A Place At Home, it’s important to understand the ongoing fees that support the franchise system and brand growth. These fees help maintain operational consistency, brand recognition, and marketing efforts, which are essential for the franchise’s long-term success.
- Royalty Fee Franchisees are required to pay a royalty fee of 5.0% to 5.5% of gross sales or a Monthly Minimum Royalty Fee, whichever is greater. However, the Monthly Minimum Royalty Fee is waived during the first six months of operation, giving new franchisees some breathing room as they establish their business.
- Brand Development Fund To support the overall marketing and brand initiatives, franchisees contribute up to 2% of gross sales to the Brand Development Fund. Currently, the fee is set at the greater of 1% of gross sales or $150 per month, per territory, ensuring consistent marketing efforts.
- Franchisee Directed Local Marketing Local marketing is critical for building awareness in the community. Franchisees are required to allocate at least 2% of their monthly gross sales to local marketing, with a minimum contribution of $150 per month, per territory.
- Additional Fees There are additional fees for training programs, technology, and other items provided by A Place At Home that may be applied.
Understanding these fees and their purpose helps you plan and allocate resources effectively, ensuring your franchise runs smoothly while benefiting from the franchise system’s support.
A Place At Home Franchise Earnings
The earnings of an A Place At Home franchise owner can vary depending on factors such as location, operational efficiency, and cost management. However, for owner-operators, the income potential is substantial. Based on the most recent data, the median gross sales for an A Place At Home franchise are approximately $1,840,942. For hands-on owners, estimated earnings are around $460,000, which reflects an impressive 25% operating profit margin based on industry margins at this level of scale.
By actively managing the day-to-day operations, franchise owners can increase efficiency and profitability, making it an attractive opportunity for those willing to invest their time and effort. These figures underscore the potential for strong financial returns in the senior care industry, especially when combined with the comprehensive support provided by A Place At Home’s franchise system.
How to Open an A Place At Home Franchise
Becoming a franchisee with A Place At Home involves a structured process designed to ensure you’re a good fit for the business and prepared for success. From the initial inquiry to launching your senior care franchise, each step is focused on helping you understand the opportunity and setting up your operations effectively.
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After your inquiry, you’ll be asked to complete a formal application. This step assesses your background, financial standing, and overall fit with the franchise’s values and goals.
- Discovery Day Once the application is approved, you’ll be invited to a Discovery Day, where you’ll meet the corporate team, learn about the business model, and get a deeper understanding of the support provided.
- Franchise Agreement After Discovery Day, if both parties feel confident moving forward, you will sign the Franchise Agreement. This formalizes your commitment and outlines the legal terms of the partnership.
- Training Program Before you launch, you’ll go through an extensive training program. This will cover everything from operations to marketing and hiring staff, ensuring you’re prepared to run your franchise.
- Site Selection and Setup Once training is complete, you’ll work with the corporate team to select a territory and establish your office. This includes securing any necessary licenses and setting up your business location.
- Grand Opening Finally, after all the preparation, you’ll launch your A Place At Home franchise and begin offering services. The corporate team will support you with marketing and operational assistance during this crucial period.
Pros & Cons
Pros
Growing Industry: Senior care is a rapidly expanding industry, driven by the aging population, offering strong demand and long-term stability.
Multiple Revenue Streams: The franchise offers diverse services, including in-home care, care coordination, and staffing solutions, allowing you to tap into multiple revenue sources.
Strong Financial Performance: The median gross sales and profit margins are impressive, especially for owner-operators, signaling a solid return on investment potential.
Cons
Operationally Intensive: Running a senior care franchise requires hands-on involvement, managing caregivers, and ensuring high-quality service, which can be demanding.
Regulatory Requirements: The healthcare sector has strict regulations, and maintaining compliance can be time-consuming and costly.
Local Market Dependency: Success can be highly dependent on the local market demand for senior care services, and not all areas may have the same level of need.
